Voluntary Contribution or Private Pension

hjr

34 year old self employed.

Profit less than 5K for year.

Curious as to what people think in terms of the above....Are you better making a voluntary PRSI contribution or starting a Private pension....Not looking for advice, just peoples own opinions really...

I think at 34 it might be best starting a pension scheme, as I'm not sure how many voluntary contributions would need to be paid to qualify for Old age pension......

barneystinson

If you made less than 5k how can you afford a pension...?

From a tax point of view it's inefficient to put money into a private pension in a year when your income is so low that you won't get tax relief - it effectively makes the contribution up to 70% more expensive.

hjr

barneystinson wrote: »

If you made less than 5k how can you afford a pension...?

From a tax point of view it's inefficient to put money into a private pension in a year when your income is so low that you won't get tax relief - it effectively makes the contribution up to 70% more expensive.

Sorry should have mentioned its joint assessment, wife has PAYE job which thankfully covers most of the bills...she also has the tax credits so any income on self employed side is taxable....